The California Tax Preparer Surety Bond is required by the California Tax Education Council.
In order to do business in the State of California, tax preparers must have this bond on file with the California Tax Education Council (CTEC).
According to the CTEC, a “tax preparer” includes:
The following requirements must be met in order to effectively register as a tax preparer in the state of California:
The applicant must register within 18 months from the completion date of the certificate of completion for the training hours. The CTEC also requires a $33 filing fee upon registration.
This surety bond is required as a form of financial security for any potential claims made against the tax preparer. If a client feels they have been financially harmed by the tax preparer, they can make a claim on the bond which the surety company would pay out if settled. Unlike insurance, the bond principal (the tax preparer) must repay the surety company for any losses incurred due to claims.
There are two types of California Tax Preparer Surety Bonds:
Both of the bonds are issued under Section 22250 of the California Business and Profession Code, which notes that:
“a tax preparer shall maintain a bond issued by a surety company admitted to do business in this state for each individual preparing tax returns for another person. The principal sum of the bond shall be five thousand dollars ($5,000).”
In order to obtain this bond, simply fill out our free online application! One of our licensed agents will contact you within one business day with a quote for the price to obtain your bond (the “premium”). If you choose to move forward after receiving your quote, we will have you sign any necessary paperwork and remit the premium payment, at which time we will ship your bond to you via USPS Priority Mail (with overnight shipping options also available).
Why choose Surety1?
At Surety1, our agents work with over a dozen “A” rated surety markets to ensure we are finding you the lowest price for your bond. We’ve been issuing surety bonds since 2003 and our quality, reliable service has led us to an A+ rating by the Better Business Bureau! Licensed in all 50 states.